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Lecture Management information systems (9/e) – Chapter 11: Developing business/IT strategies

After completing this unit, you should be able to: Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage as examples; discuss the role of planning and business models in the development of business/IT strategies, architectures, and applications; identify several change management solutions for end user resistance to the implementation of new IT-based business strategies and applications. | Developing Business/IT Strategies Chapter 11 Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage as examples. Discuss the role of planning and business models in the development of business/IT strategies, architectures, and applications. Learning Objectives Learning Objectives Identify several change management solutions for end user resistance to the implementation of new IT-based business strategies and applications. Why Study Planning Fundamentals? Information technology has created a seismic shift in the way companies do business. Just knowing the importance and structure of e-business is not enough. You need to create and implement an action plan that allows you to make the transition from an old business design to a new e-business design. Case #1: ROI in Business/IT Planning The Rowe Companies’ ROI Process Use simple ROI calculations to help prioritize IT projects for planning purposes . | Developing Business/IT Strategies Chapter 11 Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage as examples. Discuss the role of planning and business models in the development of business/IT strategies, architectures, and applications. Learning Objectives Learning Objectives Identify several change management solutions for end user resistance to the implementation of new IT-based business strategies and applications. Why Study Planning Fundamentals? Information technology has created a seismic shift in the way companies do business. Just knowing the importance and structure of e-business is not enough. You need to create and implement an action plan that allows you to make the transition from an old business design to a new e-business design. Case #1: ROI in Business/IT Planning The Rowe Companies’ ROI Process Use simple ROI calculations to help prioritize IT projects for planning purposes Also use economic value added (EVA) analysis which takes into consideration the cost of capital for a project, risk factors associated with the project, and a targeted value return percentage Case #1: ROI in Business/IT Planning The Rowe Companies’ ROI Process Return on opportunity (ROO) is also used because it combines more than a dozen factors to assess the rate of change in the business environment, the rate of change in business processes and IT infrastructure, the competitive environment, and the value of intangible assets. Case #1: ROI in Business/IT Planning Merrill Lynch ROI Process: Risk-and-payback analysis required for every costly technology initiative Single standard six-page template used that poses yes-or-no questions to evaluate project success factors coupled with a five-page financial report Case #1: ROI in Business/IT Planning What are the benefits and limitations of Rowe Companies’ ROI methods for IT project planning? What is the business value of the ROI methodology .